Understanding Negative Tax‑Deductible Amounts for Pledge Incentives

When you see a negative number (for example, -1) in the tax_deductible_amount field for a pledge installment, it's because the calculation subtracts the incentive’s fair market value (FMV) from the installment amount. If the installment is smaller than the FMV, the result is negative.

Why a pledge installment can show a negative value

The tax‑deductible amount for an installment is calculated by subtracting the incentive's FMV from the installment value. When the installment is less than the FMV, the calculation produces a negative number.

• Example: An installment of $11 minus an incentive FMV of $12 results in a tax‑deductible amount of −$1.

This negative value is expected behavior when the incentive's FMV is higher than the installment amount.

How incentives apply to pledges versus installments

• The incentive is determined based on the full pledge amount rather than individual installments.
• Each installment’s tax‑deductible line item subtracts the incentive’s FMV, which can result in a negative value if the installment is small.

Where you'll see this and what it means

You may notice negative tax_deductible_amount values in exports or integrations that include pledge installments. A negative value simply means that, for that installment, the FMV of the incentive exceeded the installment amount—it does not indicate an error.

FAQ

When does the tax_deductible_amount show as −1?

It appears as −1 when an installment is $1 less than the incentive's fair market value, for example, an $11 installment with a $12 FMV incentive.

Is something wrong if I see a negative number?

No. A negative number is expected when the installment amount is less than the incentive's FMV.

Is the incentive evaluated per installment?

No. The incentive is awarded based on the full pledge amount, not on each installment.